Fortune Real Estate Investment Trust

The Securities and Futures Commission of Hong Kong, Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Fortune Real Estate Investment Trust (a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)) (Stock Code: 778)

Managed by

ARA Asset Management (Fortune) Limited

OVERSEAS REGULATORY ANNOUNCEMENT

This overseas regulatory announcement is issued pursuant to paragraph 10.3 of the Code on Real Estate Investment Trusts published by the Securities and Futures Commission of Hong Kong.

Please refer to the attached announcement on the next page issued on the Singapore Exchange Securities Trading Limited by Fortune REIT on 21 January 2015.

By order of the board of directors of ARA Asset Management (Fortune) Limited (in its capacity as manager of Fortune Real Estate Investment Trust) ANG Meng Huat, Anthony Executive Director and Chief Executive Officer

Hong Kong, 21 January 2015

The Directors of the Manager as at the date of this announcement are Dr. Chiu Kwok Hung, Justin (Chairman), Mr. Lim Hwee Chiang, Mr. Ip Tak Chuen, Edmond and Ms. Yeung, Eirene as Non-executive Directors; Mr. Ang Meng Huat, Anthony and Ms. Chiu Yu, Justina as Executive Directors; Mr. Lim Lee Meng, Mrs. Sng Sow-Mei (alias Poon Sow Mei) and Dr. Lan Hong Tsung, David as Independent Non-executive Directors; and Mr. Ma Lai Chee, Gerald as Alternate Director to Mr. Ip Tak Chuen, Edmond.

Fortune Real Estate Investment Trust Financial Statements For the financial year ended 31 December 2014

The financial statements for the year ended 31 December 2014 have been audited by our auditors.

Fortune Real Estate Investment Trust (“Fortune REIT”) is a real estate investment trust constituted by a Trust Deed entered into on 4 July 2003 (as amended) made between ARA Asset Management (Fortune) Limited, as the Manager of Fortune REIT, and HSBC Institutional Trust Services (Singapore) Limited, as the Trustee of Fortune REIT. Fortune REIT was listed on the Singapore Exchange Securities Trading Limited and The Stock Exchange of Hong Kong Limited on 12 August 2003 and 20 April 2010 respectively.

Following the completion of the acquisition of Laguna Plaza on 9 January 2015, Fortune REIT currently holds a portfolio of 18 private housing estate retail properties in Hong Kong, comprising of 3.27 million sq ft of retail space and 2,756 car parking spaces. The retail properties are Fortune City One, Fortune Kingswood, Ma On Shan Plaza, Metro Town, Fortune Metropolis, Laguna Plaza, Belvedere Square, Waldorf Avenue, Caribbean Square, Provident Square, Jubilee Square, Smartland, Tsing Yi Square, Nob Hill Square, Centre de Laguna, Hampton Loft, Lido Avenue and Rhine Avenue. They house tenants from diverse trade sectors such as supermarkets, food and beverage outlets, banks, real estate agencies, and education providers.

1 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (a) (i) Statement of profit or loss (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year

HK$ '000 % HK$ '000 % Actual Actual Increase/ Actual Actual Increase/ 1/10/14 to 1/10/13 to (Decrease) 1/1/14 to 1/1/13 to (Decrease) 31/12/14 (a) 31/12/13 (a) 31/12/14 (a) 31/12/13 (a) Revenue(b) 348,699 319,305 9.2% 1,355,592 1,070,152 26.7% Charge-out collections(c) 76,987 73,254 5.1% 300,182 247,311 21.4% Total revenue 425,686 392,559 8.4% 1,655,774 1,317,463 25.7%

Property management fees (9,793) (9,067) 8.0% (38,339) (30,481) 25.8% Other property operating expenses (113,251) (99,800) 13.5% (420,074) (329,901) 27.3% Property operating expenses (123,044) (108,867) 13.0% (458,413) (360,382) 27.2%

Net property income (before manager's 302,642 283,692 6.7% 1,197,361 957,081 25.1% performance fee)

Manager’s performance fee (9,129) (8,532) 7.0% (36,137) (28,750) 25.7% Net property income 293,513 275,160 6.7% 1,161,224 928,331 25.1%

Interest Income 1,616 682 NM 7,161 1,242 NM

Net property income after interest income 295,129 275,842 7.0% 1,168,385 929,573 25.7%

Gain on disposal of investment properties (d) - - NM - 897 (100.0%)

Change in fair value of investment properties(e) 1,809,089 1,130,760 60.0% 3,321,779 3,088,725 7.5%

Change in fair value of financial instruments(f) (21,067) 11,476 NM (29,233) 114,803 NM

Profit before borrowing costs 2,083,151 1,418,078 46.9% 4,460,931 4,133,998 7.9%

Borrowing costs (53,722) (53,114) 1.1% (215,085) (153,832) 39.8%

Profit before tax 2,029,429 1,364,964 48.7% 4,245,846 3,980,166 6.7%

Hong Kong taxation : Current taxation (34,321) (32,059) 7.1% (138,618) (108,120) 28.2% Deferred taxation (8,926) (7,939) 12.4% (31,858) (26,103) 22.0% Total Hong Kong taxation (43,247) (39,998) 8.1% (170,476) (134,223) 27.0%

Net profit of property companies 1,986,182 1,324,966 49.9% 4,075,370 3,845,943 6.0%

Manager's base fee (24,742) (22,184) 11.5% (92,891) (70,505) 31.8% Foreign exchange (loss)/gain(g) (261) (5) NM (315) 92 NM Non-tax deductible trust expenses(h) (9,319) (93,806) (90.1%) (49,204) (126,997) (61.3%) Tax deductible trust expenses (984) (1,171) (16.0%) (4,135) (4,059) 1.9% Non tax-exempt income(i) 39 631 (93.8%) 2,501 3,223 (22.4%) Singapore taxation (8) (108) (92.6%) (420) 1,707 (124.6%) Total trust expenses (35,275) (116,643) (69.8%) (144,464) (196,539) (26.5%)

Net profit of the Group, before transactions with unitholders 1,950,907 1,208,323 61.5% 3,930,906 3,649,404 7.7%

Distributions to unitholders(j) (197,207) (182,082) 8.3% (780,770) (642,389) 21.5%

Net profit of the Group, after transactions with unitholders 1,753,700 1,026,241 70.9% 3,150,136 3,007,015 4.8%

Net profit of the Group, before transactions with unitholders 1,950,907 1,208,323 61.5% 3,930,906 3,649,404 7.7% Add/(Less): Manager's base fee 24,742 22,184 11.5% 92,891 70,505 31.8% Foreign exchange loss/(gain)(g) 261 5 NM 315 (92) NM Non-tax deductible trust expenses(h) 9,319 93,806 (90.1%) 49,204 126,997 (61.3%) Gain on disposal of investment property(d) - - NM - (897) (100.0%) Change in fair value of financial instruments(f) 21,067 (11,476) NM 29,233 (114,803) NM Change in fair value of investment properties(e) (1,809,089) (1,130,760) 60.0% (3,321,779) (3,088,725) 7.5% (k) Income available for distribution 197,207 182,082 8.3% 780,770 642,389 21.5%

2 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

Footnotes:

(a) The Group’s financial information incorporates the financial statements of the Trust and the Property Companies.

(b) Revenue includes rental income, car park income, license income, atrium income and others.

(c) Charge-out collections consist of expenses related to the operation of the properties that are payable by tenants and licensees and these expenses include air conditioning charges, management fees, promotional charges, government rents, utility charges, cleaning charges and government rates.

(d) The Group sold 5 car park lots in one of the investment properties, Fortune City One, during the first quarter of 2013.

(e) On 31 December 2014, an independent valuation was undertaken by Jones Lang LaSalle Limited. The firm is an independent valuer having appropriate professional qualifications and experiences in the location and category of the properties being valued. The valuations for the 17 properties were based on a combination of the Income Capitalization Method and Direct Comparison Method. The valuations adopted amounted to HK$32,720 million (31 December 2013: HK$29,338 million).

(f) The amount relates to the net loss arising from the re-measurement of the interest rate swaps and caps which were ineffective under cash flow hedge or not designated for hedge accounting as at 31 December 2014.

(g) Foreign exchange (loss)/gain represents realised and unrealised foreign exchange differences. The unrealised exchange difference arose from translation of monetary assets and liabilities denominated in foreign currencies into Hong Kong dollars at rates of exchange ruling at the end of the reporting period. The realised exchange difference arose from the settlement of foreign currencies payables at the transaction dates. All exchange differences are included in the statement of profit or loss.

(h) Included in the non-tax deductible trust expenses the financial year ended 31 December 2014 (the “Reporting Year” or “FY2014”) was mainly (i) amortization of debt front end fee of HK$17.5 million as a result of entering into the 2013 Facilities (as defined herein); and (ii) a one-time write-off of unamortized debt front end fee of HK$9.8 million relating to previous facilities entered into in 2012 but early refinanced during the Reporting Year, and for the financial year ended 31 December 2013 was an acquisition fee of HK$58.5 million paid in the form of units to the Manager as well as an acquisition cost of HK$36.5 million for the acquisition of Fortune Kingswood.

(i) Non tax-exempt income refers mainly to interest income from fixed deposits.

(j) The amount of distribution to unitholders has been distributed and/or accrued as distribution payable in the Statement of Financial Position.

(k) Fortune REIT’s distribution policy is to distribute to unitholders on a semi-annual basis, the higher of (i)100% of its tax-exempt income (except dividends paid out of interest income and gains, if any, which are distributable at the discretion of the Manager) after deduction of applicable expenses (“Net Tax-Exempt Income”); and (ii) 90% of consolidated net profit after tax (before transactions with unitholders) for the relevant financial period adjusted to eliminate the effects of certain adjustments in the Code on Real Estate Investment Trust (the “REIT Code”).

(l) Save as disclosed above, there is no investment income, write-off for stock obsolescence, impairment in the value of investments, profit on sale of investments, properties or plant and equipment, exceptional and extraordinary items during the financial period and the previous corresponding financial period.

3 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (a) (ii) Statement of other comprehensive income (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year

HK$ '000 % HK$ '000 % Actual Actual Increase/ Actual Actual Increase/ 1/10/14 to 1/10/13 to (Decrease) 1/1/14 to 1/1/13 to (Decrease) 31/12/14 31/12/13 31/12/2014 31/12/13

Net profit of the Group, after transactions with unitholders 1,753,700 1,026,241 70.9% 3,150,136 3,007,015 4.8%

Other comprehensive income - Items that will be reclassified to profit or loss: Cash flow hedge - Change in fair value of financial instruments (1,274) 2,887 (144.1%) 11,264 29,898 (62.3%) - Release to profit or loss(a) 8,186 1,245 557.5% 11,919 5,395 120.9% 6,912 4,132 67.3% 23,183 35,293 (34.3%)

Total comprehensive income 1,760,612 1,030,373 70.9% 3,173,319 3,042,308 4.3%

Footnote:

(a) As certain interest rate swap contracts were no longer highly effective, the respective cumulative losses from inception of the hedge until then that previously recognised in hedging reserve is released to consolidated income statement over the periods during which the interest payment in relation to the interest rate swap contracts affects the consolidated income statement. During the year, release of such cumulative losses from the hedging reserve amounted to HK$11.9 million.

4 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (b)(i) Statement of financial position, together with a comparative statement as at the end of the immediately preceding financial year

Trust Group (a) HK$ '000 HK$ '000 Actual Actual Actual Actual 31/12/14 31/12/13 31/12/14 31/12/13 Current assets Cash and bank balances 424,418 514,978 688,407 858,175 Trade and other receivables 56,710 100,143 60,853 67,093 Total current assets 481,128 615,121 749,260 925,268

Non-current assets Investment in property companies 6,429,319 6,293,502 - - Investment properties (b) - - 32,720,000 29,338,000 Derivative assets (d) - - 32,306 66,906 Deposit paid for acquisition of property companies - - 95,925 - Total non-current assets 6,429,319 6,293,502 32,848,231 29,404,906

Total assets 6,910,447 6,908,623 33,597,491 30,330,174

Current liabilities Trade and other payables 6,135 9,559 588,627 540,665 Distribution payable(c) 390,316 335,424 390,316 335,424 Borrowings - - 940,000 970,000 Derivative liabilities(d) - - - 21,368 Provision for taxation 423 547 10,049 105,842 Total current liabilities 396,874 345,530 1,928,992 1,973,299

Non-current liabilities Borrowings - - 8,881,110 8,860,372 Deferred tax liabilities - - 378,235 346,377 Derivative liabilities(d) - - 33,617 40,799 Total non-current liabilities - - 9,292,962 9,247,548

Total liabilities 396,874 345,530 11,221,954 11,220,847

Net assets attributable to unitholders 6,513,573 6,563,093 22,375,537 19,109,327

5 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

Footnotes:

(a) The Group’s financial information incorporates the financial statements of the Trust and the Property Companies.

(b) Investment properties are stated at valuation based on an independent professional valuation carried out by Jones Lang LaSalle Limited, the independent valuer on 31 December 2014. During the year, some capital costs for the properties were incurred and included in the investment properties.

(c) Distribution payable is the amount of income available for distribution accrued from 1 July 2014 to 31 December 2014. This is to comply with the REIT Code after the dual primary listing in Hong Kong, and for Fortune REIT’s distribution policy please refer to footnote (k) of section 1(a)(i).

(d) The derivative assets/liabilities relate to the fair value of the interest rate swaps and caps transacted to hedge the interest rate risk on the borrowings.

1 (b)(ii) Aggregate amount of borrowings

As at 31/12/14 Secured (a) Unsecured (a) HK$ '000 HK$ '000 Amount repayable in one year or less, or on demand 940,000 - Amount repayable after one year 7,275,397 1,605,713

8,215,397 1,605,713

As at 31/12/13 Secured (a) Unsecured (a) HK$ '000 HK$ '000 Amount repayable in one year or less, or on demand 970,000 - Amount repayable after one year 7,261,212 1,599,160

8,231,212 1,599,160

Footnote:

(a) Fortune REIT has in place three credit facilities, being the 2011 Facilities, the 2013 Facilities and the 2014 Facilities.

The 2011 Facilities is a 5-year term loan and revolving credit facility of HK$3,800.0 million, comprising of a HK$2,830.0 million term loan facility and a HK$970.0 million revolving credit facility, which will mature in 2016. As at 31 December 2014, HK$3,268.0 million had been drawn down (31 December 2013: HK$3,798.0 million).

The 2013 Facilities comprise of term loan facilities of HK$5,025.0 million, with terms between 3.5 years to 5 years. As at 31 December 2014, HK$5,025.0 million had been drawn down (31 December 2013: HK$ 5,025.0 million).

The 2014 Facilities is a 5-year term loan and revolving credit facility of up to an aggregate principal amount of HK$1,800.0 million, comprising of a HK$1,100.0 million term loan facility and a HK$700.0 million revolving credit facility, which will mature in 2019. As at 31 December 2014, HK$1,600.0 million had been drawn down.

There is an option to rollover the revolving credit facility of the 2011 Facilities and the 2014 Facilities up until maturity.

Included in the borrowings is an unamortized debt front end fee of HK$71.8 million (31 December 2013: HK$92.6 million). The 2011 Facilities are secured by, inter alia, a mortgage over Fortune City One, Ma On Shan Plaza, Fortune Metropolis, Smartland, Tsing Yi Square, Nob Hill Square, Centre de Laguna, Lido Avenue and Rhine Avenue. HK$3,406.3 million of the 2013 Facilities are secured by, inter alia, mortgage over Metro Town and Fortune Kingswood. The 2014 Facilities are secured by, inter alia, a mortgage over Belvedere Square, Provident Square, Caribbean Square and Hampton Loft.

6 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (b)(iii) Post Balance Sheet Note

On 5 December 2014, a wholly owned subsidiary of Fortune REIT entered into a sale and purchase agreement to acquire the entire issued share capital of and loan owing by a company (the Target, and referred as “Target Group” for the company and its subsidiary) which indirectly wholly owns a retail property in Hong Kong namely Laguna Plaza (the “Acquisition”) for a consideration of HK$1,925,100,000 (being the value of the property of HK$1,918,500,000 plus other net assets of HK$6,600,000 of the Target Group), subject to adjustment after completion. As at 31 December 2014, the Group paid a deposit of HK$95,925,000 for the Acquisition.

Subsequent to the end of the reporting period, the Group has entered into credit agreements with a bank on 2 January 2015 with respect to new banking facilities of up to HK$1,600 million (the “2015 Facilities”) in relation to the Acquisition. The 2015 Facilities comprises of a HK$1,200 million 5-year secured term loan facility and a HK$400 million 2-year unsecured revolving credit facility. Upon the fulfillment of the conditions as set out in the sale and purchase agreement, the Acquisition was completed on 9 January 2015 and was financed by drawdown of the 2015 Facilities and existing banking facilities of the Group.

Significant Impact to Balance Sheet upon Completion of the Acquisition

a. Investment Properties

Valuation of investment properties increased from HK$32,720.0 million to HK$34,638.5 million with the Acquisition.

b. Borrowings

Borrowings increased from HK$9,821.1 million to HK$11,686.2 million with the additional borrowings to finance the Acquisition.

7 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (c) Statement of cash flows

Group Group HK$ '000 HK$ '000 HK$ '000 HK$ '000 Actual Actual Actual Actual 1/10/14 to 1/10/13 to 1/1/14 to 1/1/13 to 31/12/14 31/12/13 31/12/14 31/12/13 Operating Activities Profit before taxation 1,994,162 1,248,429 4,101,802 3,781,920 Adjustments for: Change in fair value of investment properties (1,809,089) (1,130,760) (3,321,779) (3,088,725) Change in fair value of financial instruments 21,067 (11,476) 29,233 (114,803) Amortisation of debt front end fee 7,495 9,259 41,438 23,929 Gain on disposal of investment properties - - - (897) Base fee paid in units 24,742 22,184 92,891 70,505 Acquisition fee paid in units - 58,490 - 58,490 Interest income (1,655) (1,313) (9,662) (4,465) Borrowing costs 52,686 53,114 212,060 153,832 Operating profit before changes in working capital 289,408 247,927 1,145,983 879,786 Decrease in trade and other receivables 1,694 22,137 5,944 19,606 Increase in trade and other payables 3,159 1,639 50,146 16,515 Cash generated from operating activities 294,261 271,703 1,202,073 915,907 Income taxes paid (132,776) (112,489) (164,614) (111,750) Cash flow from operating activities 161,485 159,214 1,037,459 804,157

Investing Activities Deposit for acquisition of property companies (95,925) - (95,925) - Upgrading of investment properties (24,579) (20,998) (60,221) (66,037) Acquisition of property companies/properties, net of cash acquired - (5,668,686) - (5,668,686) Taxation paid (70,217) - (70,217) - Disposal of investment properties - - - 2,047 Interest received 2,185 2,249 9,958 4,546 Cash flow used in investing activities (188,536) (5,687,435) (216,405) (5,728,130)

Financing Activities Proceeds from issue of new units (net of issue costs) - (56) - 957,635 Distribution paid - - (725,647) (587,898) Drawdown of borrowings 600,000 5,155,000 630,000 5,155,000 Repayment of borrowings (630,000) - (660,000) (102,047) Borrowing costs paid (53,467) (51,671) (214,475) (153,239) Payment of debt front end fee - (65,325) (20,700) (65,325) Cash flow (used in)/from financing activities (83,467) 5,037,948 (990,822) 5,204,126

Net (decrease)/increase in cash and cash equivalents (110,518) (490,273) (169,768) 280,153

Cash and cash equivalents at beginning of the period 798,925 1,348,448 858,175 578,022

Cash and cash equivalents at end of the period 688,407 858,175 688,407 858,175

8 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (d)(i) Statement of changes in net assets attributable to unitholders Actual Unit issue Hedging Retained Statement for the fourth quarter FY2014 Issued Units costs reserve profits Net HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Group

Balance as at 1 October 2014 7,640,505 (286,279) (37,339) 13,273,296 20,590,183

Profit for the period, before transactions with unitholders - - - 1,950,907 1,950,907 Cash flow hedge - Change in fair value of financial instruments - - (1,274) - (1,274) - Release to profit or loss - - 8,186 - 8,186

Unitholders' transactions Creation of units - management fee paid/payable in units 24,742 - - - 24,742 Distribution paid/payable to Unitholders - - - (197,207) (197,207) Increase/(decrease) in net assets resulting from 24,742 - - (197,207) (172,465) Unitholders' transactions Balance as at 31 December 2014 7,665,247 (286,279) (30,427) 15,026,996 22,375,537

Balance as at 1 October 2013 7,491,682 (286,223) (57,742) 10,850,619 17,998,336

Profit for the period, before transactions with unitholders - - - 1,208,323 1,208,323 Cash flow hedge - Change in fair value of financial instruments - - 2,887 - 2,887 - Release to profit or loss - - 1,245 - 1,245

Unitholders' transactions Creation of units - acquisition fee paid in units 58,490 - - - 58,490 - management fee paid/payable in units 22,184 - - - 22,184 Unit issue costs - (56) - - (56) Distribution paid/payable to Unitholders - - - (182,082) (182,082) Increase/(decrease) in net assets resulting from 80,674 (56) - (182,082) (101,464) Unitholders' transactions Balance as at 31 December 2013 7,572,356 (286,279) (53,610) 11,876,860 19,109,327

Actual Unit issue Hedging Retained Statement for the YTD FY2014 Issued Units costs reserve profits Net HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Group

Balance as at 1 January 2014 7,572,356 (286,279) (53,610) 11,876,860 19,109,327

Profit for the year, before transactions with unitholders - - - 3,930,906 3,930,906 Cash flow hedge - Change in fair value of financial instruments - - 11,264 - 11,264 - Release to profit or loss - - 11,919 - 11,919

Unitholders' transactions Creation of units - management fee paid/payable in units 92,891 - - - 92,891 Distribution paid/payable to Unitholders - - - (780,770) (780,770) Increase/(decrease) in net assets resulting from 92,891 - - (780,770) (687,879) Unitholders' transactions Balance as at 31 December 2014 7,665,247 (286,279) (30,427) 15,026,996 22,375,537

Balance as at 1 January 2013 6,468,360 (271,593) (88,903) 8,869,845 14,977,709

Profit for the period, before transactions with unitholders - - - 3,649,404 3,649,404 Cash flow hedge - Change in fair value of financial instruments - - 29,898 - 29,898 - Release to profit or loss - - 5,395 - 5,395

Unitholders' transactions Creation of units - issuance of New Units 975,001 - - - 975,001 - acquisition fee paid in units 58,490 - - - 58,490 - management fee paid/payable in units 70,505 - - - 70,505 Unit issue costs - (14,686) - - (14,686) Distribution paid/payable to Unitholders - - - (642,389) (642,389) Increase/(decrease) in net assets resulting from 1,103,996 (14,686) - (642,389) 446,921 Unitholders' transactions Balance as at 31 December 2013 7,572,356 (286,279) (53,610) 11,876,860 19,109,327 9 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

Actual Unit issue Accumulated Statement for the fourth quarter FY2014 Issued Units costs losses Net HK$'000 HK$'000 HK$'000 HK$'000 Trust

Balance as at 1 October 2014 7,640,505 (286,279) (1,024,765) 6,329,461

Profit for the period, before transactions with unitholders - - 356,577 356,577

Unitholders' transactions Creation of units - management fee paid/payable in units 24,742 - - 24,742 Distribution paid/payable to Unitholders - - (197,207) (197,207) Increase/(decrease) in net assets resulting from 24,742 - (197,207) (172,465) Unitholders' transactions Balance as at 31 December 2014 7,665,247 (286,279) (865,395) 6,513,573

Balance as at 1 October 2013 7,491,682 (286,223) (757,736) 6,447,723

Profit for the period, before transactions with unitholders - - 216,834 216,834

Unitholders' transactions Creation of units - acquisition fee paid in units 58,490 - - 58,490 - management fee paid/payable in units 22,184 - - 22,184 Unit issue costs - (56) - (56) Distribution paid/payable to Unitholders - - (182,082) (182,082) Increase/(decrease) in net assets resulting from 80,674 (56) (182,082) (101,464) Unitholders' transactions Balance as at 31 December 2013 7,572,356 (286,279) (722,984) 6,563,093

Actual Unit issue Accumulated Statement for the YTD FY2014 Issued Units costs losses Net HK$'000 HK$'000 HK$'000 HK$'000 Trust

Balance as at 1 January 2014 7,572,356 (286,279) (722,984) 6,563,093

Profit for the year, before transactions with unitholders - - 638,359 638,359

Unitholders' transactions Creation of units - management fee paid/payable in units 92,891 - - 92,891 Distribution paid/payable to Unitholders - - (780,770) (780,770) Increase/(decrease) in net assets resulting from 92,891 - (780,770) (687,879) Unitholders' transactions Balance as at 31 December 2014 7,665,247 (286,279) (865,395) 6,513,573

Balance as at 1 January 2013 6,468,360 (271,593) (525,574) 5,671,193

Profit for the year, before transactions with unitholders - - 444,979 444,979

Unitholders' transactions Creation of units - issuance of New Units 975,001 - - 975,001 - acquisition fee paid in units 58,490 - - 58,490 - management fee paid/payable in units 70,505 - - 70,505 Unit issue cost - (14,686) - (14,686) Distribution paid/payable to Unitholders - - (642,389) (642,389) Increase/(decrease) in net assets resulting from 1,103,996 (14,686) (642,389) 446,921 Unitholders' transactions 10 Balance as at 31 December 2013 7,572,356 (286,279) (722,984) 6,563,093 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

1 (d)(ii) Details of any changes in the units since the end of the previous period reported on

Date Units Issued Purpose As at 1 October 2014 1,869,688,995 Total units since the end of the previous financial period

3 October 2014(a) 3,357,299 As payment of management fee for the period from 1 July 2014 to 30 September 2014

As at 31 December 2014 1,873,046,294

2 January 2015(b) 3,243,664 As payment of management fee for the period from 1 October 2014 to 31 December 2014

Deemed units as at 31 December 2014 1,876,289,958

The total number of issued units as at the end of the immediately preceding year (31 December 2013) was 1,858,891,124.

Footnote:

(a) On 2 January 2015, there was an additional 3,243,664 units issued to the Manager as payment of management fee for the period from 1 October 2014 to 31 December 2014.

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Review Engagement 2400 (Engagements to Review Financial Statements), or an equivalent standard)

The figures have been audited by the auditor in accordance with International Standard on Auditing.

3. Where the figures have been audited, or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Please see attached auditor’s report.

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited financial statements have been applied

The same accounting policies and methods of computation were followed during the current financial period as compared with those contained in the audited financial statements for the year ended 31 December 2013.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

Not applicable.

11 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

6. Earnings per unit and Distribution per unit for the financial period

Period from 1 January 2014 to 31 December 2014 Actual Actual Actual Actual 1/10/14 to 1/10/13 to 1/1/14 to 1/1/13 to 31/12/14 31/12/13 31/12/14 31/12/13 HK cents HK cents HK cents HK cents Earnings per unit for the period based on the weighted average number of units in issue, before transactions with unitholders 104.22 65.88 210.19 206.71

Weighted average number of units in issue (million) 1,870.2 1,765.4 1,870.2 1,765.4

Distribution per unit ("DPU") for the period 10.50 9.72 41.68 36.00

Total number of deemed units in issue (million) 1,876.3 1,862.5 1,876.3 1,862.5

7. Net asset value per unit based on issued units at the end of current period

Actual Actual 31/12/14 31/12/13 HK$ HK$ Net asset value per unit(a) 11.93 10.26

Footnote:

(a) Net asset value per unit is calculated based on net assets of the Group over the total number of deemed units in issue of 1,876.3 million (31 December 2013: 1,862.5 million). The increase in net asset value per unit was mainly due to the increase in the fair value of the investment properties.

8. Review of performance

Income Statement HK$ '000 % HK$ '000 % Actual Actual Actual Actual 1/10/14 to 1/10/13 to Increase 1/1/14 to 1/1/13 to Increase 31/12/14 31/12/13 31/12/14 31/12/13

Total revenue 425,686 392,559 8.4% 1,655,774 1,317,463 25.7%

Net property income 293,513 275,160 6.7% 1,161,224 928,331 25.1%

Income available for distribution 197,207 182,082 8.3% 780,770 642,389 21.5%

Financial Review

Fortune REIT’s FY2014 total revenue and net property income (“NPI”) increased by 25.7% and 25.1% year-on-year to HK$1,655.8 million and HK$1,161.2 million respectively, representing the strongest growth since 2006. The robust results were mainly accomplished through the diligent execution of our three core strategies – asset investment, asset management and asset enhancement. During the Reporting Year, solid occupancy rates, the record-breaking rental reversion across the portfolio and full year income stream from Fortune Kingswood all contributed to the strong net property income growth. In particular, Fortune Kingswood accounted for 18.4% of the NPI growth.

Total property operating expenses for FY2014 (excluding the Manager’s performance fee) increased by 27.2% year-on-year to HK$458.4 million. The increase was mainly attributed to the full-period effect of additional expenses from Fortune Kingswood. Despite the inflationary pressure, the cost-to-revenue ratio stood at 27.7% for the Reporting Year (2013: 27.4%).

Total borrowing costs, excluding non-tax deductible front end fees, for the Reporting Year totaled HK$215.1 million, an increase of 39.8% over the previous year, mainly as a result of the drawdown of additional loan facilities in October 2013 to finance the acquisition of Fortune Kingswood.

12 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

Fortune REIT recorded an income available for distribution amounting to HK$780.8 million for FY2014, an increase of 21.5% from a year earlier. The DPU for the Reporting Year was 41.68 HK cents (2013: 36.00 HK cents), comprising an interim and final DPU of 20.88 HK cents and 20.80 HK cents respectively. The DPU was 15.8% higher than that of the previous year, registering a double-digit growth for the third consecutive year. Based on the average closing unit price of HK$7.80 in Singapore and Hong Kong as at 31 December 2014, the FY2014 DPU represented a yield of 5.3%.

Final Distribution

The final DPU of 20.80 HK cents for the six months ended 31 December 2014 will be paid on 27 February 2015 to unitholders on the registers of unitholders of Fortune REIT as at 5 February 2015.

Proactive Capital Management

Fortune REIT strengthened its financial position during the Reporting Year. Capitalizing on an opportunity of liquidity in Hong Kong’s credit market in April 2014, the Manager proactively refinanced Fortune REIT’s existing loan facilities of HK$1,400 million at a lower cost ahead of their maturity in February 2015 (the “2014 Facilities”). The interest margin under the 2014 Facilities has been lowered to 1.4% per annum over HIBOR (down from 2% per annum over HIBOR). The 2014 Facilities, which are due in April 2019, also extended Fortune REIT’s weighted average term to maturity of debt. Further, the enlarged revolving credit facility of HK$700 million provides Fortune REIT with a strong foundation to deliver stable returns and pursue growth opportunities when they arise.

As at 31 December 2014, total committed loan facilities amounted to HK$10,623 million. Fortune REIT closed the Reporting Year with a gearing ratio and an aggregate leverage of 29.4% (31 December 2013: 32.7%), weighted average term to maturity of debt of 2.4 years, and an average all-in cost of debt of 2.17% (31 December 2013: 2.59%). Fortune REIT’s gross liability as a percentage of the gross assets of Fortune REIT decreased to 33.4% as at 31 December 2014 (31 December 2013: 37.0%). The net current liabilities as at 31 December 2014 was HK$1,179.7 million, the majority of which came from revolving credit facilities. There is an option to roll over the revolving credit facilities up to their maturities.

Fortune REIT had obtained both secured and unsecured loan facilities. The former are secured over Fortune REIT’s 15 investment properties, which carried an aggregate fair value of HK$30,275 million as at 31 December 2014. The Trustee has provided guarantees for all of the loan facilities.

Available liquidity stood at HK$1,418.4 million as at 31 December 2014, comprising committed undrawn facilities of HK$730.0 million and cash on hand of HK$688.4 million. Fortune REIT currently possesses sufficient financial capability to satisfy its financial commitments and working capital requirements.

During the Reporting Year, the Manager has prudently stepped up its effort to mitigate the impact of interest rate fluctuations. As at 31 December 2014, the interest cost for approximately 55% (31 December 2013: 37%) of Fortune REIT’s outstanding debt has been hedged through interest rate swaps and caps. The Manager will continue to closely monitor interest rate movements and may, depending on market conditions, consider putting in place additional hedging arrangements.

Net asset value per unit amounted to HK$11.93 as at 31 December 2014, up 16.3% from HK$10.26 at the end of 2013, mainly as a result of the increase in valuation of investment properties.

Portfolio Valuation

As at 31 December 2014, Fortune REIT’s portfolio of 17 retail properties were appraised at HK$32,720 million by Jones Lang LaSalle Limited. This represents an increase of 11.5% and 6.0% respectively from the valuation of HK$29,338 million as at 31 December 2013, and HK$30,880 million as at 30 June 2014. As the capitalization rates adopted remain unchanged, the increase in valuation was attributed to an overall improvement in asset performance. The higher valuation also resulted in a revaluation gain of HK$3,321.8 million for the Reporting Year.

13 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

Operation Review

As at 31 December 2014, Fortune REIT owns a geographically diverse portfolio of 17 retail malls and properties in Hong Kong, comprising approximately 3.11 million sq.ft. of retail space and 2,606 car parking lots.

Fortune REIT’s portfolio of private housing estate retail properties continued to shine despite the moderation of overall Hong Kong retail sales during the Reporting Year. Proactive leasing strategies coupled with various successful asset enhancement initiatives (“AEIs”) have driven leasing demand at Fortune Malls. The occupancy rate remained healthy at 97.3% as at 31 December 2014 (31 December 2013: 98.7%) despite frictional vacancies at Belvedere Square due to AEIs. Notwithstanding a much higher base of rental level of the expiring leases, a portfolio rental reversion of 23.8% was recorded for the Reporting Year, the highest in Fortune REIT’s history. Growing our business in a sustainable manner, rental reversion has been accelerating for five consecutive years. The portfolio’s passing rent was up 8.7% year-on-year and climbed to a historical high of HK$36.4 per sq.ft. as at 31 December 2014.

Fortune City One and Fortune Kingswood, being Fortune REIT’s two flagship shopping malls were the leading growth drivers of the portfolio. During the Reporting Year, more than 310,000 sq.ft. of GRA in Fortune Kingswood was renewed/re-let and a rental reversion of more than 35% was recorded. Passing rent for Fortune Kingswood increased by 13.7% year-on-year and several new specialty food and beverage outlets and two new Chinese restaurants were introduced to enhance the dining offerings. Fortune City One has been reaping profits from its full-scale renovation completed back in 2013 and continued to perform very well during the Reporting Year. With a more modern shopping ambiance and a more inviting layout, Fortune City One continues to see new interests from quality retailers as well as new source of revenue such as renting of atrium for car shows. As a result, the net property income for Fortune City One has notably increased by 14.6% from the previous year.

Fortune REIT’s portfolio currently has a total of 1,378 tenants. Collectively, the top ten tenants contributed approximately 25.9% of the portfolio’s gross rental income and occupied approximately 21.4% of total GRA as at 31 December 2014. Tenants in the non-discretionary retail sectors such as supermarkets, food and beverages as well as services and education made up approximately 60% of gross rental income, reinforcing Fortune REIT’s resilience characteristics across many business cycles.

The Manager will continue to focus on retaining quality tenants, securing an early commitment for expiring leases, as well as upgrading the tenant mix when opportunities arise.

Asset Optimization Through Enhancement Initiatives

During the Reporting Year, the Manager focused on carrying out the AEIs at Belvedere Square and planning forward for the upcoming project at Fortune Kingswood.

The renovation work at Belvedere Square commenced in September 2014 and is scheduled for completion in phases by the end of 2015. The capital expenditure is estimated to be approximately HK$80 million with a target return on investment of 15%. This major renovation aims to transform the mall through an enhanced shopping ambience and a more efficient layout so as to accommodate higher-yielding retailers and attract shoppers beyond its immediate catchment along Castle Peak Road.

In addition, the Manager is planning for the next major AEIs at Fortune Kingswood with an objective to reposition the mall into a regional shopping centre serving a wider spectrum of shoppers other than the nearby residents.

14 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

First acquisition from third party reinforcing our leading position as a property investor in Hong Kong

On 5 December 2014, Fortune REIT entered into a sale and purchase agreement to acquire Laguna Plaza in Kwun Tong, Hong Kong for HK$1,918.5 million. Laguna Plaza reinforces and complements our foothold in a large catchment area. The combination of Laguna Plaza with our nearby Centre de Laguna together forms a substantial commercial component of Laguna City, thus providing Fortune REIT with the potential to streamline operations and further optimise the tenant mix in the future. Further to the completion of the acquisition on 9 January 2015, Fortune REIT now holds a portfolio of 18 private housing estate retail properties with a total gross rentable area of 3.27 million sq.ft..

Additional Quarterly Review

Revenue and net property income for the fourth quarter of 2014 rose 8.4% and 6.7% year-on-year to HK$425.7 million and HK$293.5 million respectively. The improvement in financial performance compared to the fourth quarter of 2013 is mainly attributable to strong rental growth across the portfolio. Property operating expenses and borrowing costs for the fourth quarter of 2014 were higher than the corresponding quarter last year by 13.0% and 1.1% respectively. Income available for distribution was HK$197.2 million, an increase of 8.3% compared to the corresponding period last year.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

The asset performance in this quarter is broadly in line with the commentary under paragraph 10 in the third quarter 2014 results released on 11 November 2014.

10. Commentary on the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

Hong Kong’s economic growth weakened during the first three quarters of 2014, with GDP up by only 2.4% year-on-year. The weak performance was mainly due to a drop in tourist spending and a concurrent slowdown in domestic demand. Private consumption expenditure grew by 2.0% year-on- year for the same period. The total value of retail sales in Hong Kong recorded a marginal growth of 0.2% for the first eleven months of 2014. While retail business is expected to turn more stable as the effect of the high base of comparison from the preceding year progressively fades, the Manager remains mindful of the economic uncertainties associated with factors such as the changing pattern of tourist spending and the uncertain external environment. Nevertheless, Fortune REIT’s portfolio of private housing estate retail properties, which cater mainly to day-to-day shopping needs, will continue to benefit from the resilient nature of the non-discretionary retail sector.

As there could be continuing pressure in the coming year on certain costs such as rising wages and electricity costs, inflation and other external factors, the Manager will closely monitor the operating expenses. As part of Fortune REIT’s green policy, initiatives such as energy-saving measures will continue to be adopted to help mitigate the impact of higher electricity tariffs.

The Manager remains closely attentive to market trends and opportunities, as the global economic environment remains fragile and uncertain; these factors are compounded by the prospects of slower domestic demand and the anticipation of the potential interest rate hikes in the second half of 2015. Looking ahead, the additional income from Laguna Plaza and the full-year effect of the strong rental reversions from the Reporting Year, should contribute to further revenue growth for Fortune REIT - barring any unforeseen circumstances.

15 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

11. Distributions

(a) Current financial period

Any distribution declared for the Yes current period? Name of distribution Final distribution for the period from 1 July 2014 to 31 December 2014 Distribution Type Tax-exempt income Distribution Rate 20.80 Hong Kong cents per unit Par value of units N.M. Tax Rate These distributions are made out of Fortune REIT’s tax exempt income and net taxable interest income. Unitholders receiving distributions will not be assessable to Singapore income tax on the distributions received.

(b) Corresponding period of the immediate preceding financial year

Any distribution declared for the Yes current period? Name of distribution Final distribution for the period from 1 July 2013 to 31 December 2013 Distribution Type Tax-exempt income Distribution Rate 18.00 Hong Kong cents per unit Par value of units N.M. Tax Rate These distributions are made out of Fortune REIT’s tax exempt income and net taxable interest income. Unitholders receiving distributions will not be assessable to Singapore income tax on the distributions received.

(d) Book Closure Date 5 February 2015

12. If no distribution has been declared/(recommended), a statement to that effect

Not applicable.

13. Interested Person Transaction Mandate

Fortune REIT has not obtained a general mandate from Unitholders for Interested Person Transactions.

16 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

14. Breakdown of sales

HK$ '000 % Actual Actual 1/1/14 to 1/1/13 to Increase/ 31/12/14 31/12/13 (decrease)

Gross revenue reported for first half year 813,455 609,220 33.5% Net profit after tax for first half year 1,806,490 2,328,017 (22.4%)

Gross revenue reported for second half year 842,319 708,243 18.9% Net profit after tax for second half year 2,124,416 1,321,387 60.8%

15. Breakdown of total distribution for the financial year ended 31 December 2014

HK$ '000 Actual Actual Distribution to Unitholders 1/1/14 to 1/1/13 to 31/12/14 31/12/13

For the period 1 January 2014 to 30 June 2014 390,454

For the period 1 July 2014 to 31 December 2014 390,316

For the period 1 January 2013 to 30 June 2013 306,965

For the period 1 July 2013 to 31 December 2013 335,424

16. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rules 704(13)

Family relationship with any director Current position and duties, and the Details of changes in duties and Name Age and/or substantial shareholder year the position was held position held, if any, during the year

Chiu Yu, 34 Daughter of Dr. Chiu Kwok Hung, Deputy Chief Executive Officer since 1 No change. Justina Justin (Chairman and Non-executive March 2010. Ms. Chiu supports the director) Chief Executive Officer in the overall management of Fortune REIT including strategic planning, investor relations, asset management and investment activities.

17 Financial Statements Announcement For the period from 1 January 2014 to 31 December 2014

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses, including employee wages, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.

BY ORDER OF THE BOARD ARA ASSET MANAGEMENT (FORTUNE) LIMITED AS MANAGER OF FORTUNE REAL ESTATE INVESTMENT TRUST

Ang Meng Huat, Anthony Director

21 January 2015

18 The auditors’ report on the full financial statements of Fortune Real Estate Investment Trust for the financial year ended 31 December 2014 is as follows:

INDEPENDENT AUDITORS' REPORT

TO THE UNITHOLDERS OF FORTUNE REAL ESTATE INVESTMENT TRUST

We have audited the consolidated financial statements of Fortune Real Estate Investment Trust ("Fortune REIT") and its subsidiaries (collectively referred to as the "Group") and separate financial statements of Fortune REIT, which comprise the consolidated and Fortune REIT’s statements of financial position as at 31 December 2014, and the statements of profit or loss and other comprehensive income, statements of changes in net assets attributable to unitholders, statements of cash flows and distribution statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Manager’s Responsibility for the Financial Statements

ARA Asset Management (Fortune) Limited (the "Manager" of Fortune REIT) is responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and comply with the relevant provisions of the Trust Deed dated 4 July 2003 (as amended) (the "Trust Deed"), the relevant requirements of the Code on Collective Investment Schemes ( the "CIS Code") issued by the Monetary Authority of Singapore and the Code on Real Estate Investment Trusts (the "REIT Code") issued by the Securities and Futures Commission of Hong Kong. The Manager is also responsible for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the disposition of the assets and liabilities of Fortune REIT and of the Group as at 31 December 2014 and of their results and cash flows for the year then ended in accordance with International Financial Reporting Standards.

Report under Other Legal and Regulatory Requirements

In our opinion, the financial statements have been properly prepared in accordance with the relevant provisions of the Trust Deed and the relevant requirements of the CIS Code and REIT Code.

Deloitte Touche Tohmatsu Deloitte & Touche LLP Certified Public Accountants Public Accountants and Chartered Accountants Hong Kong Singapore 21 January 2015 21 January 2015 Asset Management (Fortune) Limited

Manager of

21 January 2015

FORTUNE REAL ESTATE INVESTMENT TRUST (“Fortune REIT”) PROPERTY VALUATIONS

The Board of Directors of ARA Asset Management (Fortune) Limited, the Manager of Fortune REIT announced that Jones Lang LaSalle Limited has completed the independent valuations as at 31 December 2014 for the seventeen properties owned by Fortune REIT through the ownership of property companies. The seventeen properties are Fortune City One, Fortune Kingswood, Ma On Shan Plaza, Metro Town, Fortune Metropolis, Belvedere Square, Waldorf Avenue, Caribbean Square, Provident Square, Jubilee Square, Smartland, Tsing Yi Square, Nob Hill Square, Centre de Laguna, Hampton Loft, Lido Avenue and Rhine Avenue.

The valuations as at 31 December 2014 are as follows:

Property Gross No. of Valuation company Property Address Rentable Parking (HK$ million) Area lots (sq ft)

Million Nice Fortune City 1 & 2 Ngan Shing 414,469 653 7,124 Development One Street, Limited 8 Lok Shing Street, New Territories, Hong Kong

Tin Shui Wai Fortune No.12 and 18 Tin 665,244 622 6,652 Development Kingswood Yan Road; No.1 Limited and 3 Tin Wu Road; No.8 Tin Shui Road; No.2 and 9 Tin Lung Road and No.3 Tin Kwai Road, Tin Shui Wai, Yuen Long, New Territories, Hong Kong

Gross No. of Valuation Property Property Address Rentable Parking (HK$ million) company Area lots (sq ft)

Poko Shine Ma On Shan 608 Sai Sha Road, 310,084 290 4,896 Limited Plaza Ma On Shan, Shatin, New Territories, Hong Kong

Mega Gain Metro Town 8 King Ling Road, 180,822 74 3,026 Resources Tseung Kwan O, Limited New Territories, Hong Kong

Vision Million Fortune 6-10 Metropolis 332,168 179 2,311 Limited Metropolis Drive, Hung Hom, Kowloon, Hong Kong

Bysean Limited/ Belvedere 530-590, 620, 625, 276,862 329 1,914 Bysky Limited/ Square Castle Peak Road- Fullforce Limited/ Tsuen Wan, New Quebostar Territories, Hong Limited/ Tidmarsh Kong Investments Limited

Waldorf Realty Waldorf 1 Tuen Lee Street, 80,842 73 1,582 Limited Avenue Tuen Mun, New Territories, Hong Kong

Genuine Joy Caribbean 1 Kin Tung Road, 63,018 117 943 Limited Square Tung Chung, New Territories, Hong Kong

Maulden Provident 21-53 Wharf Road, 180,238 N.A. 922 Investments Square North Point, Hong Limited Kong

Yee Pang Realty Jubilee 2-18 Lok King 170,616 97 863 Limited Square Street, Fo Tan, Shatin, New Territories, Hong Kong

Quick Switch Smartland 16 Tsuen Wah 123,544 67 658 Limited Street, Tsuen Wan, New Territories, Hong Kong

Gross No. of Valuation Property Property Address Rentable Parking (HK$ million) company Area lots (sq ft)

Team Challenge Tsing Yi 7-19 Tsing Luk 78,836 27 574 Limited Square Street, Tsing Yi, New Territories, Hong Kong

Art Full Nob Hill 8 King Lai Path, 91,779 43 438 Resources Square Kwai Chung, New Limited Territories, Hong Kong

Ace Courage Centre de 93 & 99 Cha Kwo 43,000 N.A. 264 Limited Laguna Ling Road, Kwun Tong, Kowloon, Hong Kong

Full Belief Limited Hampton Loft 11 Hoi Fan Road, 74,734 35 258 Tai Kok Tsui, Kowloon, Hong Kong

Partner Now Lido Avenue 41-63 Castle Peak 9,836 N.A. 182 Limited Road-Sham Tseng, Tsuen Wan, New Territories, Hong Kong

Proven Effort Rhine 38 Castle Peak 14,604 N.A. 113 Limited Avenue Road-Sham Tseng, Tsuen Wan, New Territories, Hong Kong

3,110,696 2,606 32,720 Total

By Order of the Board ARA Asset Management (Fortune) Limited As Manager of Fortune Real Estate Investment Trust

ANG Meng Huat, Anthony Director

21 January 2015 About Fortune REIT

Fortune REIT is a real estate investment trust constituted by a Trust Deed entered into on 4 July 2003 (as amended) made between ARA Asset Management (Fortune) Limited, as the Manager of Fortune REIT (the “Manager”), and HSBC Institutional Trust Services (Singapore) Limited, as the Trustee of Fortune REIT. Fortune REIT was listed on the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and The Stock Exchange of Hong Kong Limited on 12 August 2003 and 20 April 2010 respectively.

About the Manager

Fortune REIT is managed by ARA Asset Management (Fortune) Limited, a wholly owned subsidiary of ARA Asset Management Limited (“ARA”). ARA is a real estate fund management company listed on the Main Board of the SGX-ST.

More information can be found at www.ara-asia.com.

Media and investor contacts

Anthony Ang Justina Chiu Chief Executive Officer Deputy Chief Executive Officer [email protected] [email protected]

Jenny Hung Director, Investment and Investor Relations [email protected]

Singapore Office Tel: Hong Kong Office Tel: +65 6835 9232 +852 2169 0928

Asset Management (Fortune) Limited

Manager of

21 January 2015

NOTICE OF BOOKS CLOSURE & DISTRIBUTION PAYMENT DATE

NOTICE IS HEREBY GIVEN THAT the Transfer Books and Register of Unitholders of Fortune Real Estate Investment Trust (“Fortune REIT”) will be closed on 5 February 2015 at 5.00 p.m. for the purposes of determining Unitholders' entitlements to the Fortune REIT’s distribution of 20.80 Hong Kong cents per unit for the period of 1 July 2014 to 31 December 2014 (the “Distribution”).

Unitholders whose securities accounts with The Central Depository (Pte) Limited (“CDP”) are credited with Units as at 5.00 p.m. on 5 February 2015 will be entitled to the Distribution to be paid on 27 February 2015.

SINGAPORE INCOME TAX ON FORTUNE REIT DISTRIBUTION

Unitholders are NOT subject to Singapore Income Tax on the Distribution received from gross income Distribution that is tax exempt.

CURRENCY ELECTION PURPOSES

Unitholders whose Units are held directly through CDP will receive their Distributions in the Singapore dollar equivalent of the Hong Kong dollar Distribution declared, unless Unitholders elect to receive the Distributions in Hong Kong dollars. Such Unitholders must complete a prescribed form (“Form of Election”) by 5.00 p.m. on 16 February 2015. For the portion of the Distributions to be paid in Singapore dollars, the Manager will make the necessary arrangements to convert the portion of the Distribution in Hong Kong dollars into Singapore dollars at such exchange rate as the Manager may determine having regard to any premium or discount which may be relevant to the cost of exchange.

Unitholders [save for approved depository agents (acting as nominees of their customers)] may only elect to receive Distributions in either Singapore dollars or Hong Kong dollars and shall not be able to elect to receive Distributions partly in Singapore dollars and partly in Hong Kong dollars.

The Form of Election will be sent out by Fortune REIT’s Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd., on or around 9 February 2015.

IMPORTANT NOTE

Unitholders who wish to receive the Distributions in Hong Kong dollars must complete and return the Form of Election by 5.00 p.m. on 16 February 2015.

No action is needed for Unitholders who wish to receive the Distributions in Singapore dollars.

IMPORTANT DATES AND TIMES

Date/Deadline Event

5 February 2015, Thursday, 5.00 p.m. Fortune REIT books closure

16 February 2015 , Monday, 5.00 p.m. Unitholders must complete and return the Form of Election to CDP if he wish to receive the Distributions in Hong Kong dollars

27 February 2015, Friday Payment of Distribution

For enquiries, please contact Ms. Olivia Lim at +65 68359232 or email: [email protected] or visit Fortune REIT’s website at .

By Order of the Board ARA Asset Management (Fortune) Limited As Manager of Fortune Real Estate Investment Trust

ANG Meng Huat, Anthony Director

21 January 2015 About Fortune REIT

About the Manager

More information can be found at www.ara-asia.com.

Media and investor contacts

Anthony Ang Justina Chiu Chief Executive Officer Deputy Chief Executive Officer [email protected] [email protected]

Jenny Hung Director, Investment and Investor Relations [email protected]

Singapore Office Tel: Hong Kong Office Tel: +65 6835 9232 +852 2169 0928